Perth-based investor group Investmet Limited has agreed to underwrite a complex recapitalisation of Swan Gold Mining, adding to a string of mining deals it has undertaken this year.
The Swan Gold deal will enable that company to evaluate the resumption of mining at the Carnegie and Mt Ida gold projects.
The deal includes the underwriting of a $7.5 million share issue, and cash payments totaling $16.8 million to settle claims by the Group Trust and the Territory Trust.
Today’s announcement is the latest effort to revive Swan Gold, which was established in 2010 after the recapitalisation of the Michael Kiernan-led Monarch Gold Mining Co by Stirling Resources.
The deal is subject to numerous conditions, including due diligence, the termination of a 2011 share sale agreement between Swan Gold and DCM DECOmetal, and the withdrawal of any plaint proceedings relating to Swan Gold’s tenements.
They invested in Northern Star in 2009 at 1.2 cents per share. Early this year, they raised $30 million by selling part of their stake at 90 cents per share.